Make Mercedes and Volkswagen great again?
Mercedes-Benz Earnings Slump
European automakers have been lowering their expectations for the year in recent weeks, citing intense competition with local manufacturers in China and lackluster demand for electric vehicles.
An economic slowdown and property market slump have also seen Chinese buyers shy away from buying high-end cars.
Manufacturers also face the prospect of an escalating trade war with China, as officials study measures such as raising tariffs on imported large-engine vehicles in retaliation to EU plans to slap tariffs of up to 45% on electric vehicles made in China.
Wall Street Journal 25 October 2024
Volkswagen AG plans to close at least three factories, eliminate thousands of jobs and slash wages for tens of thousands of German workers as Europe’s biggest automaker tries to halt its tailspin.
The company drifted into crisis after bungling a transition to electric vehicles.
A weak lineup hampered sales in China, where rivals such as BYD Co. are gaining market share.
On top of that, car sales in Europe are around a fifth below their pre-pandemic peak, and VW’s deep restructuring signals what might be in store for other peers in the region.
Bloomberg 28 October 2024
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